MEMC Electronic (WFR - NYSE)
It has been awhile since my last journal entry. I try not to write when I don’t have anything to say. I guess that is good and bad. Good because I will not waste your time. It is bad because I should have commentary about the Market that does not waste your time. Something to work on I guess…
Let me first say that PIR and EPD have done well thus far. PIR is up about 2% and EPD is up about 10% from the buy price. There is one stock, however, that I bought a while back that has not done well. MEMC Electronic (WFR) was bought after reading a favorable article in Barron’s magazine. Scott Black, a very smart guy, who runs Delphi Management in Boston, loaded up on this stock himself. I have made thousands of dollars on Scott’s advice. Not this time. I took a 26% haircut. I did not follow the 8% rule.
MEMC Electronic Materials, Inc. is engaged in the production of wafers for the semiconductor industry. The Company provides wafers in sizes ranging from 100 millimeters to 300 millimeters and in three categories: prime polished, a highly refined, pure wafer with an ultra-flat and ultra-clean surface; epitaxial, a think, silicon layer grown on the polished surface of the wafer and test/monitor, which is substantially the same as a prime polished wafer, but with some less rigorous specifications. The Company's wafers are used as a starting material for the manufacture of various types of semiconductor devices, including microprocessor, memory, logic and power devices. In turn, these semiconductor devices are used in computers, cellular phones and other mobile electronic devices, automobiles and other products. Its principal customers are semiconductor device manufacturers, including memory, microprocessor and applications specific integrated circuit manufacturers, as well as foundries.
It did not help that the Semiconductor Equipment Industry is ranked last in terms of performance. I know EMEC will come back. I don’t know when or the magnitude.
I bought WFR around $10. The stock pierced the 200 MA and I held on. The stock pierced the 50 MA and I held on. So, now I finally decide to sell. I have to study this chart so I don’t make the same mistake twice!
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